Although many charities are focusing their outreach efforts on engaging a younger generation of philanthropists, the wealthy demographic represents a powerful resource for sustaining charities through the economic downturn, a recent survey found.
Titled “Tomorrow’s Philanthropist,” the report was conducted by Ledbury Research in partnership with Barclays Wealth, and surveyed exclusively high net worth individuals – responses were culled from 500 people with investable assets of more than $1 million and 150 people with assets of more than $5 million.
The report found that wealthy individuals have largely retained their focus on philanthropy despite the recession. Many wealthy individuals reported that they consider philanthropy a "key expense" and would sooner cut back on comforts than reduce donations – 77 percent said they would not decrease their level of giving as a result of the recession.
Although wealthy individuals have reduced their donations by an average 2.2 percent, younger wealthy donors are picking up the slack by donating an increased 3 to 4 percent.
While historically the most active donors have been those with inherited fortunes, the survey saw greater philanthropic activity from self-made individuals, suggesting that they are using their business skills and ambition to solve humanitarian problems.
Charities should keep in mind that this demographic of philanthropists is highly impact-focused, with 45 percent of people who donate $10,000 or more preferring to donate in their lifetime so they can see the impact.
In fact, many are using professional advisors to increase the impact of their donations.
Furthermore, challenging the stereotype that women traditionally hold administrative and social roles in charities instead of giving large donations, the report found that wealthy women give an average of 3.5 percent of their net worth to charities – almost double the 1.8 percent given by men.
This type of philanthropic commitment even during a recession bodes well for the future of charitable activity and social responsibility.
"The fact that we’re seeing levels of giving maintained in such a challenging economic environment is a real statement of intent and underscores the importance of philanthropy," said Matt Brady, head of wealth advisory at Barclays Wealth.
im a single male with an eleven year old son. As much as i want to make a difference it isnt possibble given the obstacles ive put up thru out my life time. if i realized how hard it is for a partially educated black man, i would of done it all over differently. jhelp me show my son…and me as well as a large majority of young intercity kids that it starts at a young age. i have a couple of ideas that would make a difference and enough heart to go along with it….but an vision without a plan….is just an hallucination….can anyone help me?